The steel market is likely to recover in the third and fourth quarters of this year, thanks to increased efforts to provide public investment and loan packages for social housing projects, as well as positive signs for the Vietnamese economy, said Doan, vice chairman of the Vietnam Steel Producers Association (VSA). Dan Tuan.
He noted that although 2023 will still be full of difficulties and challenges for the industry, Vietnam is considered to have much more potential than the economies of other countries. Its GDP growth is projected to reach around 6.5%, while the global rate is projected to be around 1.5% and in Southeast Asia an average of 5%.
National the meeting approved a VND350 trillion (US$14.9 billion) aid package for economic recovery for 2022-2023, including VND113.84 trillion for infrastructure development with a focus on key projects such as the North-South Expressway , Long Thanh International Airport and major logistics ports.
Last February, the government also gave the green light to a VND120 trillion loan package for social housing projects.
These factors should lead to sharp increase in steel demand in the third and fourth quarters, Tuan said.
He also said that in the long term, steel demand per capita in Vietnam will continue to increase from 240 kg at present to 290 kg by 2030, and the focus will be on alloy and high-grade steel.
In the first two months of 2023, crude steel production in Vietnam decreased by 22% year on year to 2.9 million tons, while sales fell by 10 % to 3.1 million tons.
